Avoid These Two Ethereum Layer 2 Tokens as Massive Unlocks Approach
The Current Ethereum Layer 2 Landscape
The Ethereum (ETH) ecosystem includes numerous second-layer blockchains (L2s), each regularly unlocking millions of dollars of their native tokens. This week, two major L2s, Arbitrum (ARB) and Starknet (STRK), will unlock nearly $100 million in tokens, creating concern over selling pressure.
Token Unlock Details
- Arbitrum will unlock 92.65 million ARB valued at $49.17 million on September 16.
- Starknet will release 64 million STRK worth $25.52 million on September 15.
Implications for Investors
Massive token unlocks often result in supply inflation, affecting token valuation. The upcoming unlocks will contribute to a circulating supply inflation of 2.7% for ARB and 3.6% for STRK. Investors should weigh potential risks against their investment strategies in the current climate of Ethereum's layer 2 solutions, which some criticize as centralized.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.